Nigerian Bank in Gambia sells shares to increase capital requirement

Skye Bank Gambia Limited, subsidiary of Skye Bank Plc in Nigeria, is in the process of selling about D100,000 worth of its shares to a foreign financial institution through private placement to meet the Central Bank of The Gambia’s directive that all banks in the country must augment their capital to D200 million by the end of this year, the paper can reveal. 

Impeccable sources close to this paper states further that the bank is in negotiation with some international financial institutions targeted for private placement, which is the sale of securities, including shares, of a company to a small number of selected investors as a way of raising capital.

Private placement is an attractive alternative for growing companies and it is a quicker form of raising money for a business.

Skye Bank Gambia MD, Mr Yusuf

Skye Bank’s Managing Director Akim Yusuf has confirmed the transactions but says “we are still in the preliminary stages”.

He explains further: “What we have agreed with the international financial institutions is to increase our capital by D100 million; so rather than the [additional] D50 million that the Central Bank is asking for, we have actually found an agreement for a D100 million (increment).” 

Mr Yusuf added that the bank is going to have above D200 million at the Central Bank by the end of this year. 

“Our target is D250 million but in case of any disappointment or shortfall from the side of the financial institutions, it will still be more than the D200 statutory capital requirement,” MD Yusuf said, adding: “Even in the case of a shortfall, from the work we have done we will not be below D210 or D220 million by the end of the year.” 

The Skye Bank boss said some of the financial institutions have already made financial commitment, not just on paper but by handing out cash.  “So we are very hopeful that the exercise is going to be a success,” he said.

‘Skye Bank attracts millions of foreign investment into The Gambia’

As part of efforts at creating a niche for itself in a highly competitive banking industry, Skye Bank Gambia Limited has been attracting millions of dollar investments into The Gambia over a short span of time in operation to boost the national economy and define the future business of the bank.
 

Skye Bank Gambia MD Akim Usuf

“In the last 10 to 11 months, we have been able to attract two very major (foreign) investments into the key sectors of the economy,” said Skye Bank Gambia Limited’ s CEO and Managing Director Akim Yusuf, at a press conference held on Wednesday at the bank’s head office on Kairaba Avenue.  

The conference was meant to showcase the numerous achievements of the bank as it clocks three years in July this year in The Gambia.

One of the investments is in agriculture, Mr Yusuf said, adding that the bank has already attracted US$2m investment into the poultry industry of The Gambia.  

“The factory, that we attracted the investment to, was virtually dead but today it has been revived and revamped thanks to the capital the investor pumped in there,” the Skye Bank CEO pointed out.